The company known for holding the largest Bitcoin $118,178 reserve, Strategy, has announced the issuance of 5 million STRC coded variable-rate preferred shares, each with a nominal value of 100 USD and an annual dividend yield of 9%. These dividends are set to be paid monthly and retroactively from August 31. This announcement closely follows the company’s acquisition of 6,220 BTC for 739.8 million USD, increasing its total holdings to 607,770 BTC. Through this issuance, the company aims to support its corporate financing strategy and future Bitcoin acquisitions.
Details of the Financing Plan via STRC Issuance
STRC has been introduced as the fourth class of preferred shares by Strategy. The management has expressed its intention to continue accumulating Bitcoin while satisfying cash needs through the introduction of these new shares. The fixed-rate dividends provide investors with predictable cash flow, while the monthly payment schedule is designed to discipline the company’s liquidity management.
The nominal value of 100 USD per share creates a standardized entry threshold aimed at institutional investors. Thus, the current financing model based on the balance of debt and equity is expanded with a new instrument. The performance of STRC will be monitored in accordance with the company’s balance sheet and fluctuations in the Bitcoin market. Crypto Traders Are Rushing to This App – Here’s Why You Should Too
Insights into Bitcoin Purchases and Yield Metrics
Since shifting focus from software to cryptocurrency in 2020, Strategy has spent approximately 43.6 billion USD on BTC purchases, with an average cost of 71,756 USD. The market value of the company’s current Bitcoins has reached approximately 72 billion USD, corresponding to roughly 3.05% of the circulating supply. This amount is seen as enhancing the company’s weight in the sector, while discussions on risks continue.
Implemented in 2024, the BTC yield metric measures performance by comparing owned Bitcoin against the diluted share ratio. CEO Michael Saylor reiterated via social media that BTC yields have been 20.8% since the beginning of the year, sharing data from the latest acquisition. These tools supporting strategy changes can strengthen institutional investors’ flexibility and risk management.